"Carter Bankshares Full Year 2024 Earnings: EPS Beats Expectations"

Ladies and gentlemen, buckle up! We've got a winner on our hands with Carter Bankshares, Inc. (NASDAQ: CARE). The bank just reported its full-year 2024 earnings, and let me tell you, the numbers are nothing short of spectacular! EPS beat expectations by a whopping 92.13%! That's right, folks, we're talking about a massive surge from $1.06 in 2023 to $2.04 in 2024. This is the kind of growth that gets investors' hearts racing!



Now, let's break down what's driving this incredible performance. First and foremost, Carter Bankshares has been working tirelessly to clean up its loan portfolio. Nonperforming loans have decreased by a staggering $28.4 million, bringing the total down to $259.3 million as of December 31, 2024. This is a massive improvement in credit quality, and it's reflected in the bank's financials. The allowance for credit losses to total portfolio loans has also decreased to 2.09% from 2.77% at the end of 2023. This means the bank is better positioned to handle any future credit issues.

But that's not all, folks! Carter Bankshares also saw a significant increase in net interest income, which rose by 6.3% compared to the year-ago quarter. This growth was supported by recent short-term interest rate cuts by the Federal Reserve. The bank's net interest margin, on a fully taxable equivalent basis, was 2.58%, slightly down from the previous quarter but up from the year-ago quarter. This shows that the bank is effectively managing its interest rate risk.

Now, let's talk about revenue. Carter Bankshares reported a 11.93% increase in revenue for 2024, bringing the total to $157.67 million. This growth was driven by several key factors, including a significant increase in deposits and a growing loan portfolio. Total deposits increased by $68.4 million, or 6.7% on an annualized basis, compared to the previous quarter, and increased $431.5 million, or 11.6%, compared to December 31, 2023. This shows that the bank's deposit products are in high demand, which in turn drives revenue through interest income and fees.

But here's the kicker: despite all this growth, the bank's financial results continue to be significantly impacted by loans in the "Other" segment of its portfolio, particularly those associated with the Justice Entities, which remain on nonaccrual status. Interest income was negatively impacted by $7.9 million and $9.4 million during the fourth quarter of 2024 and 2023, respectively, due to these credits being on nonaccrual status. This indicates that while the overall loan portfolio is growing, there are still risks and challenges associated with certain loans that could impact future revenue growth.



So, what does all this mean for investors? Well, the current analyst consensus of a "Buy" rating and a 30.30% upside in the stock price aligns perfectly with the company's recent financial performance and future growth prospects. The bank's strategic initiatives, such as the acquisition of two branches in Winston-Salem and Mooresville, North Carolina, and the launch of a brand refresh, are expected to enhance its market presence and profitability. Additionally, the bank's strong capital and liquidity levels suggest that it is well-positioned to continue growing its revenue streams in the future.

But don't just take my word for it. The numbers speak for themselves. Carter Bankshares is on fire, and this is a stock you want to own. So, do yourself a favor and get in on the action before it's too late. BUY NOW!